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Income taxes | 12 Months Ended
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Dec. 31, 2019
Income taxes |
Income taxes | 14. Income taxes The components of income before income taxes for the years ended December 31, 2019 and 2018 are as follows:
|  | Year Ended December 31,
|  | 2019 |  | 2018
Foreign (not subject to income taxes) |  | $ | 13,593,497 |  | $ | 15,100,642
Mexico |  |  | (2,458,210) |  |  | (3,115,656)
United States |  |  | 2,657,405 |  |  | (153,003)
|  |  | 13,792,692 |  |  | 11,831,983
Less gain on sale of discontinued operations |  |  | (3,621,170) |  |  | —
Less discontinued operations |  |  | — |  |  | (1,115,825)
|  | $ | 10,171,522 |  | $ | 10,716,158
The Company’s provision for (benefit from) income taxes for the years ended December 31, 2019 and 2018, which related to U.S. operations, consisted of the following:
|  | Year Ended December 31,
|  | 2019 |  | 2018
Current: |  |  |  |  |  |
Federal |  | $ | 143,567 |  | $ | 100,806
State |  |  | 171,093 |  |  | 106,922
Foreign |  |  | — |  |  | —
Total |  |  | 314,660 |  |  | 207,728
Deferred: |  |  |  |  |  |
Federal |  |  | (203,031) |  |  | (302,440)
State |  |  | (45,008) |  |  | (62,579)
Foreign |  |  | — |  |  | —
Total |  |  | (248,039) |  |  | (365,019)
Total provision |  | $ | 66,621 |  | $ | (157,291)
A reconciliation of the U.S. statutory federal tax rate to the effective benefit rate for the U.S. loss before income taxes for the years ended December 31, 2019 and 2018 is as follows:
|  | Year Ended December 31, |
|  | 2019 |  | 2018 |
U.S. statutory federal rate |  | 21.00 | % | 21.00 | %
State taxes, net of federal effect |  | 4.38 | % | 4.22 | %
Nontaxable foreign income |  | (30.09) | % | (38.26) | %
Research & development tax credit |  | (3.46) | % | (2.27) | %
Permanent items |  | (0.79) | % | 1.26 | %
Valuation allowance for deferred tax assets |  | 9.45 | % | 12.72 | %
|  | 0.49 | % | (1.33) | %
The tax effects of significant items comprising the Company’s net long-term deferred tax liability as of December 31, 2019 and 2018 were as follows:
|  | December 31,
|  | 2019 |  | 2018
Deferred tax assets: |  |  |  |  |  |
Operating loss carryforwards - Mexico |  | $ | 3,427,295 |  | $ | 3,020,049
Land basis difference - Mexico |  |  | 1,164,365 |  |  | 999,719
Start-up costs - Mexico |  |  | 4,608,990 |  |  | 3,856,942
Research & development tax credits - U.S. |  |  | 166,653 |  |  | —
Valuation allowances |  |  | (9,244,550) |  |  | (7,876,710)
|  |  | 122,753 |  |  | —
Deferred tax liabilities: |  |  |  |  |  |
Property and equipment - U.S. |  |  | 148,707 |  |  | 180,431
Intangible assets - U.S. |  |  | 1,380,328 |  |  | 479,443
|  |  | 1,529,035 |  |  | 659,874
Net deferred tax liability |  | $ | 1,406,282 |  | $ | 659,874
As of December 31, 2019, the Company had a net loss carryforward related to its Mexico operations of approximately $11.4 million that will begin to expire in 2020 if unused. The deferred tax asset is included in the consolidated balance sheet as prepaid expenses and other current assets as of December 31, 2019.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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